A South Korean consumer group plans to file a complaint with the Korea Fair Trade Commission (KFTC), asking it to halt Tesla’s marketing of Full Self-Driving (FSD) to owners of cars that cannot legally use the system. Reuters reviewed the complaint. The move follows a Seoul court’s dismissal last month of a lawsuit by owners seeking FSD refunds.
The dispute centers on where Tesla’s vehicles are made. Model S, Model X and Cybertruck vehicles imported from the United States are covered by an agreement recognizing US safety standards, and were the only Tesla models to receive FSD (Supervised) when the feature was enabled in South Korea late last year. Model 3 and Model Y vehicles sold in the country are built in Shanghai and require Korean approval, which FSD does not have.
Tesla Korea country manager Seo Young-deuk told lawmakers last month that FSD works on about 20% of Teslas registered in the country. Company data submitted to the National Assembly showed that Tesla had sold more than 170,000 Shanghai-built vehicles in Korea since 2023, with sales of those cars increasing more than fivefold from 2023 to 2025.
The consumer group says Tesla’s promotions, including a “coming soon” campaign and a demonstration video filmed on Korean roads, did not make clear that FSD would only work on a limited share of the vehicles being sold. It alleges the company continued marketing the system to buyers despite knowing that many of their cars could not use it.
Tesla previously charged 9.043 million won (about $6,726) for FSD in Korea before switching to a monthly subscription costing 150,000 won (about $112) in August. The group is asking the KFTC to temporarily bar Tesla from marketing FSD for ineligible cars, impose fines and refer the case to state investigators.
The KFTC has already opened an investigation into Tesla’s FSD advertising, an agency official told Reuters. The company has submitted written responses, but did not respond to Reuters’ request for comment.
Tesla applied for certification last month, after Seo told a parliamentary hearing on October 8 that the company had not formally asked the transport ministry to test FSD. The ministry has told a lawmaker that the system does not meet local safety requirements, including a rule requiring drivers to keep their hands on the wheel. Current versions of FSD allow hands-free driving when the cabin camera detects that the driver is watching the road.
A Seoul court dismissed a separate refund lawsuit last month, citing Korean regulations as the reason additional features had not launched. The ruling did not prevent Tesla from continuing to sell vehicles in the country; the company has overtaken BMW this year to become South Korea’s top imported car brand.
Sources: Electrek.